MML launches a loan disbursement program in collaboration with SBI to support rural entrepreneurs.
Banking & Finance
Kochi (Kerala)-based Muthoot Microfin Limited (MML), a microfinance institution, has started disbursing loans through its co-lending partnership with the State Bank of India (SBI), India's largest commercial bank, headquartered in Mumbai, Maharashtra.
- This initiative aims to support rural entrepreneurs, enhance financial inclusion, and promote self-sufficiency in rural and semi-urban areas.
- In the 2nd Quarter (Q2) of Financial Year 2024-25 (FY25), MML's net profit dropped 44% to Rs 61.6 crore from Rs 110 crore last year, due to challenges in the microfinance sector and higher employee costs, while its gross non-performing assets (NPA) ratio increased to 2.7% from 2.3% in the same period last year.
Main Point :- (i) Under the collaboration, SBI has approved a total loan limit of Rs 500 crore, which will be disbursed in installments of Rs 100 crore.
(ii) Loans ranging from Rs 50,000 to Rs 3 lakh will be provided to eligible customers, focusing primarily on members of Joint Liability Groups (JLGs) involved in agricultural and allied activities, along with other income-generating initiatives.
(iii) By collaborating with SBI, MML can offer loans at lower interest rates, making them more accessible and affordable for borrowers, and plans to expand the co-lending initiative nationwide, as it currently operates in 20 states and 369 districts across India.
About Muthoot Microfin Limited (MML)
CEO : Sadaf Sayeed
Headquarters : Kochi, Kerala
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